Trump, China's Xi talk TikTok, trade, and Taiwan before inauguration

U.S. President-elect Donald Trump and Chinese President Xi Jinping discussed critical issues, including TikTok, trade, fentanyl, and Taiwan, in a phone call on Friday, just days before Trump’s second term begins.

Both leaders described the conversation positively, signaling cautious optimism despite looming tensions.

Trump, who has pledged aggressive tariffs on Chinese imports, said the call was “a very good one for both China and the U.S.A.” He expressed hope for collaborative problem-solving.

U.S. President-elect Donald Trump looks on during a press conference at Trump Tower in New York City, U.S., September 6, 2024. File/AFP

"We discussed balancing trade, fentanyl, TikTok, and many other subjects,” he wrote on his social media platform. “President Xi and I will do everything possible to make the world more peaceful and safe.”

TikTok ban

The discussion occurred as the U.S. Supreme Court upheld a law requiring TikTok’s parent company, ByteDance, to sell its U.S. operations by Sunday or face a ban.

The divestment order, rooted in national security concerns, adds urgency to the complex U.S.-China relationship.

Taiwan and sovereignty concerns

Xi emphasized China’s stance on Taiwan and urged the U.S. to handle the issue carefully. The Taiwan issue concerns China's national sovereignty and territorial integrity," Xi said, according to Chinese state broadcaster CCTV.

China has ramped up military activity around Taiwan in recent years AFP

He reiterated that mutual respect for core interests is key to stable relations.

Trump’s prior administration assertively defended Taiwan, including regularizing arms sales. However, during his reelection campaign, Trump controversially suggested that Taiwan should compensate the U.S. for its defense.

Trade and tariff challenges

Trade remains a focal point as Trump prepares to intensify his protectionist policies. He has vowed to impose a 10% tariff on all U.S. imports and a 60% tariff on goods from China, escalating the economic rivalry between the world’s two largest economies.

Xi, in turn, called for mutually beneficial trade relations, avoiding conflict and confrontation.

The Chinese leader expressed hope that both nations could respect each other's core interests and navigate differences constructively.

Looking ahead

The call marked the first direct communication between Trump and Xi since Trump’s November election victory. Trump acknowledged prior indirect communications through representatives and voiced optimism about building on their relationship.

Both nations face heightened diplomatic and economic challenges as Trump's inauguration approaches. Analysts expect a turbulent period, with the potential for breakthroughs or further escalation.